Michael Schaus

Seattle might end up having some trouble implementing their dictatorial decree that no employee is worth less than $15 per hour. The Emerald City, in some sort of utopian liberal fog, recently passed legislation raising the minimum wage… And there’s already a lawsuit pending.

Seattle is being sued by the International Franchise Association, because the law requires that “big businesses” – which will include any franchise business – must hike their wages sooner than other small businesses. As a result, franchise owners who operate small businesses throughout the region will be forced to adapt to the new wage requirement on the same increased timetable as large multinational corporations.

The disproportionate impact this law will have on franchisees is in addition to the economically illiterate move for higher minimum wages. So, naturally, the city’s Socialist city council member (I’m not being disparaging – she’s actually a Socialist) feels that everything is right with the world:

Kshama Sawant argued at one public hearing that, “In order to be a franchisee, you have to be very, very wealthy.”

Um… No. You actually don’t. In fact, many franchise owners are just barely getting by. Take for example, Kathy Lyons who poured her life savings into her small franchise. According to Fox News:

Kathy Lyons [a franchisee] says she’s not even close to being rich. She took out a small business loan of $235,000 using her home mortgage as collateral to launch a BrightStar franchise. She invested her life savings of $200,000 into the home health care company and is now afraid she could lose it all.

But even if Seattle’s favorite Socialist councilwoman was right: So what? Most people don’t operate a business with the intention of losing money… As Steve Martin once said, “So… It’s a profit deal!” Business owners don’t offer jobs as a charity – workers are expected to contribute a value above and beyond their wage. That’s kinda how profits are made; and only profits enable businesses to hire workers in the first place. I mean, seriously, do these people think that business owners operate their franchise for the “fun” of balancing budgets, paying taxes, and following ill-informed government policies? Because I can think of far more entertaining ways to blow my life savings.


Michael Schaus

Michael Schaus is the Associate Editor for Townhall Finance, and the Executive Producer for Ransom Notes Radio. He is a former talk show host and political activist. Having worked in fields ranging from construction to financial investment, his perspectives and world views are forged with a deep understanding of what it means to be an American.
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